Fabrinet drops after earnings, dragging down Marvell and Amphenol in AI stock sell-off

Fabrinet posted a quarter that would make most CEOs pop champagne. Revenue hit a record $1.316 billion, up 45% year-over-year. Non-GAAP earnings per share came in at $4.10, comfortably topping the $3.81 consensus. The stock initially climbed about 5% on the news. Then, in after-hours trading, it cratered somewhere between 9% and 20%. The numbers looked great on paper Fabrinet’s fiscal Q4 2026 results were strong by virtually any conventional measure. The $1.316 billion in quarterly revenue blew past analyst expectations of roughly $1.28 billion. Full fiscal year 2026 revenue reached $4.64 billion, reflecting 36% growth from the prior year. For Q1 of fiscal year 2027, Fabrinet projected revenue in the range of $1.375 billion to $1.425 billion. Non-GAAP EPS guidance of $4.10 to $4.25 also exceeded what the Street had penciled in. But investors looked past the top-line fireworks and zeroed in on something less flattering: margins, capital expenditure requirements, and the question of whether the stock’s valuation had simply run too far, too fast. Profit-taking hits the whole neighborhood The sell-off wasn’t contained to Fabrinet. Marvell Technology and Seagate each dropped approximate...